According to fDiMarkets, the Asia-Pacific region recorded nearly three times as many FDI projects than Latin America in the automotive original equipment manufacture and automotive components sectors in 2011. Between January 2011 and December 2011, a total of 277 projects were recorded in Asia-Pacific, accounting for 1.5% of the global FDI total. In the same period in Latin America a total of 93 FDI projects were recorded, equating to a 0.5% share of global FDI. In terms of capital expenditure, $23.9bn was invested in Asia-Pacific, compared to $13.08 in Latin America.
In the Asia-Pacific region, Volkswagen proved to be the most prolific investor. In December 2011, a joint-venture subsidiary of Volkswagen announced plans to invest $1.85bn to construct a passenger car factory in Ningbo, China.
In Latin America, Japan-based automotive manufacturer Nissan proved to be the top investor in terms of capital expenditure. In January 2011, for example, the company announced plans to invest $1.5bn to build a factory in Brazil that will create as many as 2000 new jobs. In the same month, General Motors and PSA Peugeot-Citroen announced manufacturing expansion plans in Mexico and Argentina, respectively.
The top five investors into both regions proved to be quite diverse, with US-, France- and Germany-based manufacturers investing in both regions. In Latin America, Brazil and Mexico received the most capital, while in Asia-Pacific, China was by far the most popular destination.